Skip to comments.Report: GOP budget cuts would hit U.S. economy (Goldman Sachs analysis, 'growth cut by half')
Posted on 02/23/2011 7:28:51 PM PST by NormsRevenge
Spending cuts approved by House Republicans would act as a drag on the U.S. economy, according to a Wall Street analysis that put new pressure on the political debate in Washington.
The report by the investment firm Goldman Sachs said the cuts would reduce the growth in gross domestic product by up to 2 percentage points this year, essentially cutting in half the nation's projected economic growth for 2011.
The analysis, prepared for the firm's clients, represents the first independent economic assessment of the congressional budget fight, which could lead to a government shutdown as early as next week.
Nonetheless, Republicans are unlikely to easily retreat from their insistence on more than $60 billion in reductions in federal spending as a condition of continuing funding for the government through the rest of the year.
A spokesman for House Speaker John A. Boehner of Ohio said the Goldman Sachs report represented "the same outdated Washington mind-set," comparing it to the thinking behind the 2009 Recovery Act that released federal funds to counter the effects of the recession.
But Democrats seized on the report as a validation of their arguments against the Republican cuts.
"Just as the economy is beginning to pick up a little steam, the Republican budget would snuff out any chance of recovery," said Sen. Charles E. Schumer (D-N.Y.).
(Excerpt) Read more at latimes.com ...
It's like we have a Big Gubamint Mutual Assured Destruction Doomsday Machine Entitlement thingy.
Alice in WonderLand mixed with BiZarro World
They aren’t clueless, they are shameless LIARS.
Screw Goldman Sachs, damn bunch of democrat sleaze bags.
Not to sound paranoid, but Goldman Sachs has made several large fortunes on the TARP bailout and other government activities. The last thing they want is a return to the marketplace.
They were very large donors to Obama, and Hank Paulson, who was foolishly made Treasury Secretary by Bush, worked hard to get Obama elected by pulling that October Surprise of his, which left McCain with his mouth hanging open and presented Obama as a financial genius.
Paulson was formerly CEO of Goldman Sachs.
I basically agree with this assessment. The economy has been artificially inflated with an orgy of government spending. Unfortunately, the bill has come due. There will be short term pain to tame government spending. The alternative is an economic collapse when the world rejects tht dollar.
Reducing spending is only half the equation. We need to make the country attractive for investors especially investments in human capital. The massive mountain of new regulations on employment and production will still impede investment evan after spending reductions are made.
Goldman Sachs? Shouldn’t most of those folks be in jail with Bernie Madoff?
If we continue on the course we’re on, Big Government will snuff out our children’s future. The present course is not sustainable in the short term or in the long term.
That would be the same GOldman Sachs who
....got money on the sly from Obama to help bail them out at our expense
....donates big time to the Democrats to the tune of millions of dollars
.... are hoping for more money from their pals in government.
They are sleeze
This is equivalent to the Foxes instructing the Farmer how to build the chicken coop...
I wonder. Will it be as much a drag as your $12.9 Billion bailout drag is still causing?
STFU, and get your own self serving house aligned with the interests of our nation, butttwinkie!!!
... and Bawny Fwank?...
they are probably shorting the US dollar
Government budget cuts would help the economy because necessary federal programs would be saved (like Social Security and Medicare) at the expense of non essential ones like THE DEPARTMENT OF EDUCATION, THE HIGH SPEED RAIL PROJECT, OBAMACARE, THE FDA, THE IRS, NPR, THE NATIONAL ENDOWMENT OF THE ARTS, PLANNED PARENTHOOD, FOREIGN AID TO DICTATORS, etc.
State budgets could be brought under control with massive cuts in union pay and benefits, cuts in services and benefits to illegals, etc.
...and screwing the pooch...
If we are borrowing and printing money to prop up the economy it is NOT growing.
GDP, as reported by the Bureau of Lies and Statistics, includes 13% government spending. Back out the taxpayer subsidy and we haven’t had positive GDP for decades. The republicans are offering the people a small small break and Goldman has a fit. Their executives might have to trim a few million from their annual bonuses. If we don’t ditch these bloodsuckers soon, we won’t have a country worth saving.
Hey, if I were stupid, I could be a journalist too.
I’m not aware of a reason not to view Goldman Sachs as a criminal enterprise...
Hey, Times are hard on Wall ST. too.. bonuses are down 8% to 20 billion or so..
NY: Wall Street 2010 bonuses estimated at $20.8B
ALBANY, N.Y. - Wall Street paid an estimated $20.8 billion in bonuses to New York City securities industry employees for 2010, the first full year after the national recession officially ended, New York state Comptroller Thomas DiNapoli said Wednesday.
Goldman Sachs is one of the few primary dealers of US Treasuries. When the FED buys, they go through Goldman Sachs, probably for higher prices than necessary - which is one of the back-door bailouts these firms receive.
Goldman Sachs like ATT needs to be broken up and spun off.
Goldman Sachs is corrupt and should be investigated for insider trading, corruption, bribery of government officials, malfeasance, money laundering, violations of RICO provisions, etc.
Just who from this sack of *&^* (R)s would investigate them? No one.
The Rats know that the economy is still going to be a disaster in 2012, and they intend to blame the GOP.
So their bankster arm is helping to lay the groundwork.
One thing I hope is that, although it wouldn’t be a great deal of monetary savings, we radically cut back those agencies piling regs, fees, and taxes on business.
Yeah, let’s just keep spending like lunatics.
Yeah hit it in the a$$ and get it moving forward again... what a bunch of globalist commie banker thieves.
Mom and Dad (republicans) lost their jobs. They had to leave the house for an extended period of time to look for other jobs. In the meantime the kids (democrats)who were left at home with strict instructions (the constitution)on how to manage the house, discovered that they had access to Mom and Dad/s credit cards.
They had one of 2 choices. Act like responsible adults, manage the house (that was now on shaky ground), by the strict rules (constitution) intended to guide their actions through difficult times or...take the credit cards, forget the rules and party like there is no tomorrow and the bills will never have to be paid.
Unfortunately the children chose the latter. But Oh-oh, now Mom and Dad come home. Mom got a job but Dad didn't so things are still very shaky. But now Mom and Dad learn that the bad situation they left behind has been made immensely worse by the irresponsible uncontrolled spending binge of the children.
But what hurts just as much, is that after years of believing that the family all honored the same set of rules, the parents have learned that those immature little brats never believed in the rules at all. It was just a game of convenience. And it was much more convenient to spend other peoples money and avoid taking tough action, than to remain true and steadfast and tighten your belt for a while.
Now Mom and Dad have an even bigger whole to dig out of. In the meantime the kids will go back to complaining because cable TV and high speed internet needs to be shut off, they have to pack their own lunches and they won't get an allowance for just showing up with their hands out each time the calendar says Friday.
LIke I am going to take advice from the oens who helped create the meltdown in the first place...no thanks!
You can see what is shaping up here.
Dear Reader has created chaos in the Middle East (training coup leaders in Egypt, for example) and oil is sky rocketing. The Fed and Treasury policy was kicking off serious inflation even before Obama threated our oil supply.
It will be the Republicans’ fault for being fiscally responsible when the economy collapses.
So now the Left wing loons are quoting the Looters from Wall St. that they Condemn every chance they get. I guess Goldman Sachs is Ok since Most of them work in the White House Now
“Growth”? WTF??!these people are clueless.